"This funding will support a much-needed step in the development of biofuels and renewable energy programs," Bodman said.
The $160 million solicitation is part of President Bush’s Biofuels Initiative which will lead to the use of non-food based biomass, such as agricultural waste, trees, forest residues, and perennial grasses in the production of transportation fuels, electricity, and other products. One of the goals of this initiative is to accelerate research and make "cellulosic ethanol" cost-competitive by 2012, offering the potential to displace up to 30 percent of our nation’s current fuel use by 2030. The goal of the solicitation announced today is to demonstrate that commercial biorefineries can be profitable once initial construction costs are paid. There is a $100 million cap on any single-demonstration award, and projects are required to show a 60/40 (industry/government) cost share.
Bodman also highlighted Agriculture Secretary Mike Johanns’s announcement today in Las Vegas, of $176.5 million available in loan guarantees and almost $11.4 million in grants to support investments in renewable energy and energy efficiency improvements by agricultural producers and small businesses.
